With 51% of customers stating that a single negative interaction can convince them to never do business with a company again and businesses losing an estimated $62 billion annually due to poor customer service according to Vonage, it's unsurprising that good customer service has become one of the most sought-after commodities in today's world. However, why is that?
The answer to that question dates back to the days when traditional mom-and-pop businesses ruled the market, as they relied heavily on the close relationships they developed within their communities. Even when large retailers surpassed the allure of the neighborhood storefront with lower prices and increased convenience, the human desire for genuine connections persisted.
As Michael DeRosa explains, face-to-face interaction with customers still has value, and people will gladly pay to experience it. "The world has come full circle in terms of how businesses and brands treat their customers, as money is not always the motivating factor for people to do business with their preferred vendors," he says. "Large retailers are less concerned with their customers than small businesses are. Customers demand respect, which is why they have once again returned to direct-to-consumer brands."
Michael DeRosa is the founder of Michael DeRosa Exchange and a luxury real estate specialist specializing in one-of-a-kind and unique high-end properties. Speaking from experience, DeRosa says that loyal and returning customers are the lifeblood of any of today's D2C businesses, as he experienced that firsthand. As DeRosa explains, his real estate brokerage and auction marketing firm survived the $8 trillion housing bubble that resulted in the Great Recession and economic crisis brought about by COVID-19, owing to his customized service to his clients.
"I believe that selling real estate should not be a one-size-fits-all marketing approach," DeRosa says. "At Michael DeRosa Exchange, we offer a variety of services to our clients throughout the real estate process, including high-level advertising exposure, international listing, and private listing. We strive to create an experience that is unique and memorable for each and every client, and this is the secret to our success."
Additionally, Evergage discovered that brands that embrace personalization see significant gains in their key performance indicators and that 96% of the marketers surveyed stated that they intended to maintain or increase their investment in personalization.
Michael DeRosa also emphasizes the importance of loyal, satisfied customers as a powerful marketing tool. "Positive customer word-of-mouth is critical for acquiring new customers," he says, noting that 83% of consumers trust personal recommendations more than any other form of marketing, according to Nielsen. "Customers like these are walking, talking advertisements, which is why customer service is critical for attracting new customers and retaining existing ones," he adds. "One more piece of advice: customer service is not dead, but if it dies, your business will soon follow."
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